What is the difference between a sale and an agreement to sell

In everyday life, the terms agreement and contract are often used interchangeably. People are often unaware of the differences between legal terms. The confusion leads to further doubts about the words and phenomena that are related. One classic example is the sale and agreement to buy. When purchasing a property, is this an agreement to sale or a contract of purchase? Understand the differences between a sale and an agreement to sell that are applicable to business transactions.

What is Sale and Agreement of Sale?

It is best to take it step-by-step before jumping into the terms. Below are some legal times that are essential to understanding the difference between an agreement to buy and a sale:

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According to section 2(e), “every promise, or set of promises that form a consideration between each other,” is an agreement. When two people agree to something in exchange for a consideration or money, it is an agreement. This is not necessarily a legal contract, as it could also be gambling. Contact Kolkata attorneys for more information on warranties and understandings.


According to section 2(h) of the Indian Contract Act 1872, “an arrangement enforceable by law constitutes a contract.” When two parties agree on certain terms and conditions in exchange for a consideration that is legal, they have a contract. In the case of A and B, if they agree to pay Rs 1000 for certain goods, and the goods are legal, then it is considered a contract. A valid contract must meet the conditions set out in Sections 10-30 of the Indian Contract, which includes free consent, the absence of undue influence and misrepresentation.


Sale is defined in Section 54 of the Transfer of Property Act as “a transfer of ownership for a price that has been paid, promised, or paid in part and partially.” This means when ownership of a piece of property is transferred to someone else in exchange for payment of a specific price (whether it is fully paid or not), this is called a sale.

Purchase Agreement

Section 4(3) of the Sale of Goods Act of 1930 explains the context in these words: “Where the property of the goods will be transferred to the buyer at a later date or is subject to a condition to be met, the agreement to sell is the contract.” This is a promise between parties about a future transaction.

Difference between contract of sale and agreement to sell

Most people assume that there is no difference between agreement and contract and that they are synonyms. It is important to note that a contract of sale is different from an agreement to buy.

A contract of sale can be defined as a broad term that is used when two parties agree to trade goods for a price. Sale is used when the exchange occurs immediately. When the deal is to happen in the future, however, it’s called an agreement to buy. Lawyer Kolkata can help with legal disputes involving business transactions. Understanding the difference between an agreement to purchase and a sale in tabular format will make it easier for you to understand.

Difference between a Sale Deed and an Agreement to Sell

Written agreements to sell include all the terms and conditions that have been agreed upon by both buyer and seller in relation to a future exchange of goods and consideration. A sale deed, on the other hand, contains all terms and conditions for a transaction. ciCivilawyer in Kolkata is able to assist with legal issues in Kolkata.

A contract of sale can contain a future date or a set of conditions that will govern a future sale. A deed of agreement of sale only has the date of execution of such sale and does not include any future needs, except for partial payment.

A future transfer of ownership of the goods is stated in a sale agreement. In a sale agreement, the immediate transfer of ownership is specified.

A contract of sale/sale deed is based on an agreement to sell. An agreement to sell is converted into a sale only if it meets the terms of the contract.

The registration of a sale agreement is not required. The contract can be oral. According to applicable laws, a sale deed must be registered.

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